Credit Cards Checked In Call-girl Inquiry

December 26, 1986|By Ronald Koziol.

A northwest suburban female escort service suspected of being a front for a prostitution ring rang up estimated $300,000 a year in credit card business, according to records seized by federal and local investigators.

Investigators say the documents portray the service, known as Night World and located in Schaumburg, as one of the largest operating in the Chicago suburbs.

In inquiries into call-girl operations, federal agents have determined that credit card use normally accounts for about 15 percent of the gross because the majority of payments are made in cash.

Because of this, FBI and IRS agents are attempting to learn if Night World may have either direct links to organized crime or is paying tribute to mobsters for permission to stay in business.

``It`s hard to believe that a service this large and lucrative could operate without the sanction of the mob,`` said one federal source. ``But so far we haven`t found any solid evidence of this.``

Street taxes or tribute to the Chicago crime syndicate which could amount to 25 percent of the gross income, have been a traditional cost of doing business for illegitimate enterprises in and around the city for more than 50 years.

Records of any ``taxes or tribute`` to mob bosses probably would not even exist, the investigator said. Those payouts are no longer written on paper since former Chicago mob bosses Joseph Aiuppa and Jack Cerone were convicted and sent to prison earlier this year on the basis of cryptic records kept by a Kansas City cohort.

However, a more modern record of income--computer printouts seized during a series of raids last year by the FBI and Schaumburg police--have become a major part of a federal grand jury investigation into prostitution rings in Chicago`s suburbs. The records studied by agents showed a clientele of more than 1,500, many subsequently identified as professional men or prominent businessmen.

Strategy by prosecutors in the past has been to subpoena many of the customers to testify before a federal grand jury. The customers reportedly then are asked a series of questions in an effort to obtain new information about the ring and its leaders.

According to an affidavit filed in U.S. District Court by FBI agents, Night World had established an elaborate security system designed to catch any undercover law enforcement officers.

Each potential customer must pass a credit investigation before he is assigned a code number. An index card is prepared listing the customer`s name, address, the names of escorts used and the dates of the meetings, according to the court document.

Using the computer or index cards, Night World employees are able to confirm if an individual is ``an approved customer.`` Escorts are then contacted by pager and given their assignment.

Investigators discovered that fees ranged from $125 to $200 an hour, with some escorts earning as much as $2,500 a week. The women are permitted to keep 60 percent of the fees paid, according to the affidavit.

The document also said that the targets of the FBI investigation are Larry Puterbaugh Sr., formerly of Bartlett; his ex-wife, Jacquelyn Snyder of 622 Waterford Dr., Schaumburg; and an alleged employee, Sandy Shuffitt.